If business wires are consistantly sent overseas to a personal account at $10,000 or close to $10,000 but are Not funded by structured cash deposits...does this warrant a SAR filing?

If not...then is business invoices of the principals enough documentation to justify not filing a SAR?

Thanks for you help

Would this type of transactional activity appear to be consistent with the type of business that your customer engages in? What types of services are being provided by the individual benefitting from the wires? How are the funds originating prior to the wires being sent?

These are some of the questions you need to answer before deciding on whether or not to file a SAR.

We have reviewed that and justified the above. If those things are documented as per policy and the wires are being funded by legit business transactions (Checks, ACH, etc) should a SAR be filed if the $9,000 to $10,000 wires are being sent consistantly. What I'm questioning is...is that considered structuring, even though we can justify the transaction?

Are these invoices legitimate? Do you know anything about the recipient of the wires? Why are the amounts always in the 9-10,000 range? You need to be able to answer those questions.

Funding to the underlying dda by checks and ACH may have nothing to do with the fact that the income is being fraudulently wired out to hide income overseas or to fund illegal activity.

If you are not dealing in cash it can't be structuring. As previously stated by others, you still want to do your due diligence but you certainly don't have a structuring issue with wires under the stated facts.

Fraudulent transactions have been uncovered because people have the 10,000 figure for cash in their heads and "structure" their wires because they think there is a reporting requirement for wires as well.

It is a red flag and could be "structuring" of wires to avoid perceived reporting.

Structuring for avoidance of CTRs is cash; other transactions can be structured to evade real or perceived reporting requirements.

One other comment: if your bank lends to this company and has a lien on A/R and Inventory, you want to make sure these "invoices" are legitimate. The bank can get burned on all ends of these types of transactions.

As I stated, due diligence should be conducted and you may uncover something more. Avoiding perceived (non-existent) reporting requirements does not rise to the level of a crime. Ask any attorney. Stupid yes, criminal no.

I would not file a SAR on these facts without uncovering something else.

I think we are saying the same thing. The bank won't know what is going on if they don't poke around. They don't know enough at this point but definitely need to inquire...it is an unusual situation and one that has led to uncovering fraud at other banks.

agreed. keep looking.

Thank You...We are looking into it, but I didn't want regulators saying it doesn't matter what due diligence you do, it still is structuring of wire transfers and a SAR should have been filed now let's do a lookback!

That is why you need to find out the "why" of the $ amount of the wires. I have personally experienced examiners walking in with $9,000 wires and saying "what are these".

Gotcha.